Home prices in the United States continued to inch up in September but the rate at which prices grew sustained its tepid growth, according to several latest home price reports.
CoreLogic's latest report found that home prices in the country increased 5.6 percent in September on a year-over-year basis, but dropped slightly by 0.1 percent from a month ago.
Standard & Poor's/Case Shiller Home Price Index report also showed a similar rise noting that prices went up 5.1 percent in September from a year ago. A separate Trulia report also showed that home prices across the country rose 6.4 percent in October on a year-over-year basis and improved one percent from a month ago.
All the reports showed a rise in home prices, but also highlighted a slowdown in the pace of price appreciation.
"There has been a clear bifurcation in home price growth for lower-end versus upper-end properties in 2014. As of December 2013, both lower-end and upper-end property prices were up 9.7 percent on a year over year basis. As of September, lower-end prices were up 9.4 percent but upper-end prices were up only 4.5 percent," Sam Khater, deputy chief economist at CoreLogic, explained in a statement.
David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, also explained to The Wall Street Journal that home prices are now showing "weaker year-over-year numbers" and that prices are now back at Spring 2005- levels.
CoreLogic forecasts prices to improve 0.1 percent on a month-on-month basis and 5 percent on a year-over-year basis.
"With more positive macroeconomic trends emerging in the United States, we are forecasting moderate price growth for 2015," Anand Nallathambi, president and CEO of CoreLogic, added in the statement.
Overvalued or Undervalued?
Experts at Trulia are pointing out that though price gains have slowed in 60 of the 100 metro areas analyzed, they aren't dropping everywhere. In fact, some are seeing price gains. About 40 metro areas saw prices increasing on a year-over-year basis.
Below is a chart where prices have gained most in the United States:
Trulia also asserted that home prices are now undervalued 3 percent nationally. However, there are some metro areas where prices are overvalued. Take a look at their "Bubble Watch" report here.